Required Information

Problem $11-42($LO $11-3,$ LO $11-4)($Algo$)$

$[$The following information applles to the questions displayed below.$]$

On August $1$ of year $0,$ Dirksen purchased a machine for $$40,500$ to use in its business. On December $4$ of year $0,$ Dirksen

sold the machine for $$37,250.$ Use MACRS Table.

Note: Loss amounts should be Indicated by a minus sign. Do not round percentages used for calculations. Round

other Intermedlate computations to the nearest whole dollar amount. Leave no answers blank. Enter zero if

applicable.

Problem $11-42$ Part$-$a $($Algo$)$

a$.$ What are the amount and character of the gain or loss Dirksen will recognize on the sale? $!$

Required Information

Problem $11-42($LO $11-3,$ LO $11-4)($Algo$)$

$[$The following information applies to the questions displayed below.$]$

On August $1$ of year $0,$ Dirksen purchased a machine for $\backslash$$$40,500$ to use in its business. On December $4$ of year $0,$ Dirksen sold the machine for $\backslash (\backslash$$ $37,250\backslash ).$ Use MACRS Table.

Note: Loss amounts should be Indicated by a minus sign. Do not round percentages used for calculatlons. Round other Intermedlate computatlons to the nearest whole dollar amount. Leave no answers blank. Enter zero if applicable.

Problem $11-42$ Part$-$b $($Algo$)$

b$.$ Dirksen depreclated the machinery using MACRS $($seven$-$year recovery perlod$).$ What are the amount and character of the galn or loss Dirksen will recognize on the sale if the machine is sold on January $15$ of year $1$ instead? Table $1$ MACRS Half$-$Year Convention

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline $\backslash$multicolumn$\{7\}\{|$c$|\}\{$Depreciation Rate for Recovery Period$\}\backslash \backslash$

$\backslash$hline & $3-$Year & $5-$Year & $7-$Year & $10-$Year & $15-$Year & $20-$Year $\backslash \backslash$

$\backslash$hline Year $1$ & $33\mathrm{.}33\backslash \%$ & $20\mathrm{.}00\backslash \%$ & $14\mathrm{.}29\backslash \%$ & $10\mathrm{.}00\backslash \%$ & $5\mathrm{.}00\backslash \%$ & $3\mathrm{.}750\backslash \%\backslash \backslash$

$\backslash$hline Year $2$ & $44\mathrm{.}45$ & $32\mathrm{.}00$ & $24\mathrm{.}49$ & $18\mathrm{.}00$ & $9\mathrm{.}50$ & $7\mathrm{.}219\backslash \backslash$

$\backslash$hline Year $3$ & $14\mathrm{.}81$ & $19\mathrm{.}20$ & $17\mathrm{.}49$ & $14\mathrm{.}40$ & $8\mathrm{.}55$ & $6\mathrm{.}677\backslash \backslash$

$\backslash$hline Year $4$ & $7\mathrm{.}41$ & $11\mathrm{.}52$ & $12\mathrm{.}49$ & $11\mathrm{.}52$ & $7\mathrm{.}70$ & $6\mathrm{.}177\backslash \backslash$

$\backslash$hline Year $5$ & & $11\mathrm{.}52$ & $8\mathrm{.}93$ & $9\mathrm{.}22$ & $6\mathrm{.}93$ & $5\mathrm{.}713\backslash \backslash$

$\backslash$hline Year $6$ & & $5\mathrm{.}76$ & $8\mathrm{.}92$ & $7\mathrm{.}37$ & $6\mathrm{.}23$ & $5\mathrm{.}285\backslash \backslash$

$\backslash$hline Year $7$ & & & $8\mathrm{.}93$ & $6\mathrm{.}55$ & $5\mathrm{.}90$ & $4\mathrm{.}888\backslash \backslash$

$\backslash$hline Year $8$ & & & $4\mathrm{.}46$ & $6\mathrm{.}55$ & $5\mathrm{.}90$ & $4\mathrm{.}522\backslash \backslash$

$\backslash$hline Year $9$ & & & & $6\mathrm{.}56$ & $5\mathrm{.}91$ & $4\mathrm{.}462\backslash \backslash$

$\backslash$hline Year $10$ & & & & $6\mathrm{.}55$ & $5\mathrm{.}90$ & $4\mathrm{.}461\backslash \backslash$

$\backslash$hline Year $11$ & & & & $3\mathrm{.}28$ & $5\mathrm{.}91$ & $4\mathrm{.}462\backslash \backslash$

$\backslash$hline Year $12$ & & & & & $5\mathrm{.}90$ & $4\mathrm{.}461\backslash \backslash$

$\backslash$hline Year $13$ & & & & & $5\mathrm{.}91$ & $4\mathrm{.}462\backslash \backslash$

$\backslash$hline Year $14$ & & & & & $5\mathrm{.}90$ & $4\mathrm{.}461\backslash \backslash$

$\backslash$hline Year $15$ & & & & & $5\mathrm{.}91$ & $4\mathrm{.}462\backslash \backslash$

$\backslash$hline Year $16$ & & & & & $2\mathrm{.}95$ & $4\mathrm{.}461\backslash \backslash$

$\backslash$hline Year $17$ & & & & & & $4\mathrm{.}462\backslash \backslash$

$\backslash$hline Year $18$ & & & & & & $4\mathrm{.}461\backslash \backslash$

$\backslash$hline Year $19$ & & & & & & $4\mathrm{.}462\backslash \backslash$

$\backslash$hline Year $20$ & & & & & & $4\mathrm{.}461\backslash \backslash$

$\backslash$hline Year $21$ & & & & & & $2\mathrm{.}231\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$